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Power quality is a vital issue in distribution systems. Power quality issues have become important for the extensive use of sensitive equipment and integration of renewable generation. Several researchers have proposed for voltage sag mitigation devices to minimise financial losses arising from voltage sag. Augmentation of micro-level units like housing complex, super-specialty hospitals, rapid urbanisation has opened up demand for electricity. Modernisation in life has led to coextensive requirement for good quality power. Importance of micro-level consumers is to be considered while looking into the matter of optimal selection of voltage sag mitigation devices. In this study, a new framework is proposed for optimal selection of voltage sag mitigation devices to minimise voltage sag occurrence in a distribution system based on Nested Logit model. Nested Logit model has the essential characteristic for selection of optimal option by allowing equal preference to all the available customers' choice. This model gives unbiased and equal importance to all the available mitigation devices. The optimal selection of mitigation devices is obtained using aggregate forecasting. Voltage sag severity index is used for placement of optimally selected voltage sag mitigation device. Two case studies are described to validate the proposed approach.

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